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Sox, WEEI agree to record $200 million radio deal

BOSTON -- In a landmark deal guaranteed to reverberate throughout baseball and the broadcasting industry, the Red Sox today secured a record-breaking 10-year, $200 million deal to return their play-by-play rights to Boston flagship WEEI Radio.

The rights had been the subject of a bidding war between Entercom Radio, the parent company of WEEI, and Greater Media, which owns a handful of stations in Boston, including WBOS-FM.

Greater Media had offered the Red Sox an equity stake in WBOS-FM in return for the play-by-play rights for the team's broadcasts, but, ultimately, Red Sox principal owner John Henry opted for the more conventional -- if record-setting -- standard rights-fee arrangement.

The deal more than doubles the Red Sox' rights fee from this past season, the final year of a multiyear arrangement with Entercom/WEEI. The last deal, which escalated yearly, topped out at approximately $8 million for this season.

The $20 million-per-year average, which combined cash and value, is unprecedented in its length and value. It's believed the New York Yankees, whose deal with WCBS-AM in New York expires after this season, had held the previous record for most lucrative rights fees, earning in the neighborhood of $10 million annually.

The deal benefits Entercom in two ways. First, in keeping the rights away from Greater Media, Entercom also succeeded in preventing a potential competitor taking shape on WBOS-FM. It had been Greater Media's intent to turn WBOS-FM, which currently has a music format, into an all-sports station to compete directly with WEEI.

WEEI's ratings dominance in Boston is unchallenged. The station is a powerhouse, leading the market in the critical men's 25-54 demographic throughout the day. A recent broadcast trade industry report said the station billed $47 million in advertising in 2005.

Secondly, Entercom can attach the successful Red Sox brand to its family of stations. It's likely Entercom will place the team's broadcasts on WRKO-AM in Boston to help lift the sister station's profile. The games will continue to air in the Rhode Island market on WEEI-FM (103.7).

Henry is likely to be hailed by fellow baseball owners for securing such a significant leap in local media income. Several small-market teams have local TV deals which don't equal one-quarter of today's radio windfall.

- Sean McAdam

Posted by Art  at 4:32 PM | Permalink